Different Classes of Medical Malpractice Insurance

Different Classes of Medical Malpractice Insurance

If you are looking at the availability of the medical malpractice insurance policies, you might well appreciate that there are several different types with each of these varying in the type of coverage provided to the medical professional. Since it is so critical to have the right level of insurance protection in place, it will help to have a better idea of the range of policies available and extent of coverage provided. Here are the main types of medical malpractice policies available:Claims-made coverage – a claims-made coverage in a medical malpractice policy designed to provide coverage throughout the period the insurance is in force and active. So, in order that a claim can be accepted by the insurance it would need to be filed during the period of the active insurance coverage. If a doctor or surgeon later decides to switch insurance or the policy is cancelled, the policy is no longer able to accept future claim requests, even if the alleged negligence took place while the insurance was previously active. Insurance costs for this type of policy are generally more affordable than some of the alternative options since the period of insurance is limited and excludes of the potential of future liabilities.Tail coverage and prior acts – in the event that the claims-made coverage has been taken out by the medical professional, it often benefits to rely on the extra services provided by the tail coverage policy. If a doctor would like the extra reassurance in knowing that liability coverage will continue for a claim that might be reported after the period of the standard insurance term, then the add-on protection is likely to be highly desirable. If a doctor or surgeon purchases this extra cover from an insurance company that organized the coverage on the expired policy, the add-on protection is known as tail coverage. But in those situations where the extra coverage is purchased elsewhere, the policy is referred to as prior acts coverage.Occurrence coverage – An occurrence coverage malpractice policy is able to offer the more wide-ranging coverage option, and allows a claim to be filed at any time providing that insurance coverage was in force when the incident took place, and it doesn’t matter if a policy has been cancelled or expired since the reporting of the alleged act of negligence. By eliminating the need to rely on the trail or prior acts extensions, you are more able to a greater level of protection under the single policy. Due to the wider coverage provided under this policy, it is often found to attract the higher rates than compared to the claims-made policies.